In the matter the Dispute Resolution Panel directed the Assessing Officer to examine the expenditure and if it was found that the provision was made on a consistent and scientific basis, the assessee manufactured multiple products and non-utilised portions of earlier years are either written back or reduced from the new provisions, the expenditure should be allowed under section\u00a037(1). The Tribunal held that the issue with regard to disallowance of working capital adjustment was restored to the file of the Assessing Officer\/Transfer Pricing Officer with the direction to allow working capital adjustment on actual basis. The Tribunal held, that the Assessing Officer did not follow the directions given by the Dispute Resolution Panel. Therefore, the issue was restored to the file of the Assessing Officer with the direction to examine the claim of the assessee in accordance with the principles laid down by the Supreme Court in the case of Rotork Controls India. Provision for bad and doubtful debts the\u00a0 matter restored to Assessing Officer.\u00a0 (AY.2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Capital or revenue-Product development expenses-Allowable as revenue expenditure-Provision for customer claims-Matter restored to Assessing Officer to examine claim in accordance with principles laid down by Supreme Court-Provision for bad and doubtful debts–Matter restored to Assessing Officer. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-35922","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9lo","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=35922"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35922\/revisions"}],"predecessor-version":[{"id":35923,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35922\/revisions\/35923"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=35922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=35922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=35922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}